Republic Services gets $1 billion term loan connected to acquisition

By William Gullotti

Buffalo, N.Y., May 4 – Republic Services, Inc. entered into a $1 billion term loan credit agreement on April 29 in connection with its acquisition of US Ecology, Inc., according to an 8-K filing with the Securities and Exchange Commission.

Interest is SOFR plus a margin ranging from 60 basis points to 100 bps. The agreement also has a delayed-draw ticking fee that ranges from 6.5 basis points to 15 bps.

The fee and the margin are determined by the company’s debt rating.

The credit facility is unsecured and will mature April 29, 2025.

The agreement contains customary affirmative and negative covenants, including, among other things, a covenant requiring the Republic not to exceed a 3.75 to 1 maximum ratio of total debt to EBITDA. The maximum ratio may be temporarily raised to 4.25 to 1 under certain acquisition-related conditions.

The company may pay dividends and repurchase common stock if it is in compliance with these covenants.

Bank of America, NA is administrative agent. BofA Securities, Inc. is the lead arranger and bookrunner.

BNP Paribas, PNC Bank, NA, Sumitomo Mitsui Banking Corp., Bank of Nova Scotia, Truist Bank, U.S. Bank NA and Wells fargo Bank, NA are the co-documentation agents.

Republic, in consultation with one or more lenders selected by the company to be the sustainability coordinator under the credit agreement, will be entitled to establish specified key performance indicators with respect to environmental, social and governance targets of the company and its subsidiaries.

The sustainability coordinator, the company and the administrative agent may amend the credit agreement (unless that amendment is objected to by lenders holding more than 50% of the commitments), solely for the purpose of incorporating the key performance indicators so that some adjustments to the otherwise applicable facility fee or interest rate may be made based on the company’s performance against those key performance indicators.

The waste collection company is based in Phoenix.

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